Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $178,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $36,562.
What is its approximate internal rate of return? (Round answer to 0 decimal place, e.g. 13%.)
Internal rate of return
Answers
Answer: 10%
Explanation:
You can use Excel to solve for this.
The investment will be in negative as shown below.
Input the increase in net annual cash flows 7 times to represent 7 years.
IRR = 9.9999%
= 10%
Related Questions
of 20 >
Which of the statements concerning retirement accounts is true?
A.)Since Roth IRAs are funded with post-tax dollars, they are never as attractive as pre-tax traditional IRAs.
B.)Contributions to personal retirement accounts remain the property of the individual or heirs, but Social Security
payments are transferred to others.
C.)Individuals can allocate the funds in IRAs, 401(k)s, Roth IRAs, and Social Security accounts according to their risk preferences.
D.)Individuals do not pay income tax on Social Security contributions, but there are no tax benefits tied to personal
retirement accounts.
Answers
B. Contributions to personal retirement accounts remain the property of the individual of heirs, but SS payments are transferred to others.
Contributions to personal retirement accounts remain the property of the individual or heirs, but Social Security payments are transferred to others. Thus, option B is correct.
What is retirement?Retirement can be termed as when a person leaves an active work life and takes the decision of not returning to work. people usually tend to take retirement at the age of 50 to 60. they may take full, partial, or temporary retirement.
Retirement accounts are basically created by people to have a saving, a tax-free income, and that act as social security.
If you have a retirement account, then the amount that is in the account remains with the account holder itself, but the amount of social security gets transferred to the others. Therefore, option B is the correct option.
Learn more about retirement, here:
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Timely Transport provides local delivery service for a number of downtown and suburban businesses. Delivery charges are based on distance and weight involved for each delivery: 21 cents per pound and 16 cents per mile. Also, there is a $26 handling fee per parcel.
a. Develop an expression that summarizes delivery charges. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)
y = $
x1 + $
x2 + $
b. Determine the delivery charge for transporting a 50-pound parcel 30 miles. (Do not round your intermediate calculation. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
y = $
Answers
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Following are the solution to the given points:
For point a:
Allow 'Y' dollars for delivery fees.
[tex]\to Y= (0.30)X_1+ (0.10)X_2 + 20[/tex]
when [tex]X_1[/tex] is the parcel's weight in pounds and [tex]X_2[/tex] is the delivery distance in miles.
For point b:
when driving 30 kilometers with a 50-pound package:
[tex]\to X_1= 50\\\\\to X_2= 30[/tex]
Calculating the shipping fees:
[tex]\to Y= (0.30)X_1+ (0.10)X_2 + 20 \\\\\to Y= (0.30)50+ (0.10)30 + 20 \\\\[/tex]
[tex]= (0.30)50+ (0.10)30 + 20 \\\\= 15+ 3 + 20 \\\\=\$38[/tex]
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what is the marketing?
Answers
Explanation:
the action or business of promoting and selling products or services, including market research and advertising.
For each of the following scenarios, indicate which of the four basic tax planning variables (entity, character, time period, jurisdiction) impacts after-tax value.
a. Aloha Corporation is considering building a new manufacturing facility in either State U or State P. State U has a 10 percent state income tax rate. State P has a 15 percent state income tax rate, but offers a tax holiday for new business investment that would exempt up to $250,000 of Aloha’s earnings from state income tax for the first five years of operations in State P.
b. Mary wishes to help her nephew, Gill, pay his college tuition. Instead of giving Gill cash, Mary gives him bonds earning $10,000 annual interest income. Mary’s marginal tax rate is 35 percent and Gill’s marginal tax rate is 15 percent.
c. Congress has recently enacted a decrease in corporate tax rates that will take effect at the beginning of next year. Grant Company, a cash basis taxpayer, is planning to pay expenses prior to year-end in order to maximize its tax savings in the current year.
d. Will has $50,000 to invest in the stock market. He is considering two alternatives. Stock A pays annual qualifying dividends of 6 percent. Stock B pays no dividends but is expected to increase in value at a rate of 5 percent per year. Will would hold either investment for a minimum of four years. Will’s marginal tax rate on ordinary income is 35 percent.
Answers
Answer:
Letter D is the answer
Explanation:
trust me bro
Help ASAP Please! Accounting class! Lorge Corporation has collected the following information after its first year of sales. Sales were $1,575,000 on 105,000 units; selling expenses $250,000 (40% variable and 60% fixed); direct materials $606,100; direct labor $250,000; administrative expenses $270,000 (20% variable and 80% fixed); and manufacturing overhead $357,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year.
(See screenshots)
Answers
Answer:
Lorge Corporation
Contribution margin for the current year
= $315,000 ($3 per unit)
Contribution margin for the proposed year = $346,500
Fixed costs for the current year = $473,100
Break-even units = 157,700 units
Break-even sales dollars = $2,365,500
Explanation:
a) Data and Calculations:
Sales revenue = $1,575,000
Sales units = 105,000 units
Sales price per unit = $15 ($1,575,000/105,000)
Total Variable Fixed
Selling expenses = $250,000 $100,000 (40%) $150,000 (60%)
Direct materials $606,100 606,100
Direct labor $250,000 250,000
Administrative expenses $270,000 54,000 (20%) 216,000 (80%)
Manufacturing overhead $357,000 249,900 (70%) 107,100 (30%)
Total costs $1,733,100 $1,260,000 $473,100
Contribution margin for the current year = $315,000 ($1,575,000 - $1,260,000)
= $3 per unit
Unit sales = 115,500 (105,000 * 1.1)
Sales revenue = $1,732,500
Variable costs 1,386,000 ($15 - $3)
Contribution margin for the proposed year = $346,500 ($3 * 115,500)
Fixed costs for the current year = $473,100
Break-even units = $473,100/$3 = 157,700 units
Break-even sales dollars = $473,100/0.2 = $2,365,500
Minor Electric has received a special... Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $11 per unit. Minor currently produces and sells 7,500 units at $12.00 each. This level represents 75% of its capacity. Production costs for these units are $13.50 per unit, which includes $9.00 variable cost and $4.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $625 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. If Minor wishes to earn $1,075 on the special order, the size of the order would need to be:_______.
a. 3,400 units
b. 683 units
c. 1,700 units
d. 136 units
e. 850 units
Answers
Answer:
e. 850 units
Explanation:
Desired profit = $1,075
New machine cost = $625
Variable cost per unit = $9 per unit
Sale price per unit = $11 per unit
Order size = (Desired profit + Machine cost) / Contribution margin per unit
Order size = ($1,075 + $625) / ($11 - $9)
Order size = $1,700 / $2
Order size = 850 units
So therefore, if Minor wishes to earn $1,075 on the special order, the size of the order would need to be 850 units.
Roanoke Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (5,200 bars) are as follows:
Ingredient Quantity Price
Cocoa 400lbs. $1.25per lb.
Sugar 80lbs. $0.40per lb.
Milk 120gal. $2.50per gal.
Determine the standard direct materials cost per bar of chocolate. Round to two decimal places.
Answers
Answer:
$0.16
Explanation:
Particulars Quantity Price Amount
Cocoa 400 $1.25 $500
Sugar 80 $0.40 $32
Milk 120 $2.50 $300
Total $832
Standard direct materials cost per bar = Total amount / Number of bar
Standard direct materials cost per bar = $832 / 5,200 bars
Standard direct materials cost per bar = $0.16
The contribution margin format income statement: Multiple Choice is most frequently used for financial statement reporting purposes. uses a behavior pattern classification for costs rather than a functional cost classification approach. emphasizes that all costs change in proportion to any change in revenues. results in a larger amount of operating income than the traditional income statement format.
Answers
Answer: uses a behavior pattern classification for costs rather than a functional cost classification approach.
Explanation:
The behavioral pattern of a cost refers to its relationship with the volume of production or sales. Costs that change along with the volume of production or sales are termed "variable costs" and costs that do not change are termed "fixed costs".
The Contribution Margin income statement classifies costs by whether they are variable or fixed which is why it is said that the format uses a behavioral for cost classification pattern not a functional one.
Edgar accumulated $5,000 in loan debt. If the interest rate is 20% per year and he does not make any payments for 2 years, how much will he owe on this debt in 2 years for quarterly compounding? Round your answer to the nearest cent Do NOT round until you calculate the final answer.
Answers
Answer:
Edgar
The amount he will owe on this debt in 2 years for quarterly compounding is:
= $7,387.28
Explanation:
Accumulated loan debt = $5,000
Interest rate per year = 20%
Period of loan = 2 years
Interest compounding = quarterly
From an online financial calculator:
N (# of periods) 8
I/Y (Interest per year) 20
PV (Present Value) 5000
PMT (Periodic Payment) 0
Results
FV = $7,387.28
Total Interest $2,387.28
Klein Company issues a four-year note in exchange for a license agreement with fair value of $100,000. The contract requires payment of $27,956 at the beginning of each of the four years. The approximate effective interest rate associated with the notes payable is:_____.
a. 10%.
b. 8%.
c. 6%.
d. 7%.
Answers
Answer:
b. 8%.
Explanation:
The effective interest rate can be determined using the rate function in excel as shown below:
=rate(nper,pmt,-pv,fv,type)
nper=period of license=4 years
pmt=27956
pv=-100000(the initial value of the license)
fv=0
type=1(1 for beginning payments, 0 for end of the period payments)
=rate(4,27956,-100000,0,1)
rate=8.00%
1. The difference between contribution margin and income from operations is___.
a. net income.
b. variable costs.
c. fixed costs.
d. one of these choices are correct.
2. A company's operating leverage is computed as:____.
a. contribution margin divided by income from operations.
b. profit margin divided by net income.
c. revenue divided by expenses.
d. none of these choices are correct.
3. The __________ is the relative distribution of sales among the products sold by a company.
a. sales mix.
b. mixed cost.
c. product mix.
d. none of these choices are correct.
4. The unit selling price of the overall enterprise product equals the____.
a. average selling price of the products.
b. price of the highest-selling product in the mix.
c. sum of the unit selling prices of each product multiplied by its sales mix percentage.
d. price of the product with the lowest selling price.
Answers
Answer:
1. The difference between contribution margin and income from operations is fixed costs. income from operations = Contribution margin - Fixed expenses. So therefore, the difference between contribution margin and income from operations is known as fixed costs.
2. A company's operating leverage is computed as contribution margin divided by income from operations. Degree of Operating Leverage = Contribution Margin / Net Operating Income
3. The sales mix is the relative distribution of sales among the products sold by a company.
4. The unit selling price of the overall enterprise product equals the sum of the unit selling prices of each product multiplied by its sales mix percentage.
Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume parties, and other functions. During its first year of business, the company incurred the following costs: Variable Cost per Hula Skirt Direct materials $ 9.60 Direct labor 3.40 Variable manufacturing overhead 1.05 Variable selling and administrative expenses 0.40 Fixed Cost per Month Fixed manufacturing overhead $ 16,125 Fixed selling and administrative expenses 4,950 Dance Creations charges $30 for each skirt that it sells. During the first month of operation, it made 1,500 skirts and sold 1,375. Required: 1. Assuming Dance Creations uses variable costing, calculate the variable manufacturing cost per unit for last month. 2. Complete a variable costing income statement for the last month. 3. Assuming Dance Creations uses full absorption costing, calculate the full manufacturing cost per unit for the last month. 4. Complete a full absorption costing income statement. 6. Suppose next month Dance Creations expects to produce 1,500 hula skirts and sell 1,600. Without recreating the new income statements, calculate the difference in profit between variable costing and full absorption costing. Which would be higher
Answers
Answer:
1. $14.05 per unit
2. Contribution Margin $21,381
Net Operating Income $306
3.$24.08 per unit
4.Gross Margin $7,150
Net Operating Income $4,620
6. $1,075
Variable costing would be higher
Explanation:
1. Calculation to determine the variable manufacturing cost per unit for last month
Using this formula
Variable manufacturing cost per unit = Direct material + Direct labor + variable manufacturing overhead
Let plug in the formula
Variable manufacturing cost per unit= $9.60+3.40+1.05
Variable manufacturing cost per unit=$14.05 per unit
Therefore Variable manufacturing cost per unit is $14.05 per unit
2. Calculation to Complete a variable costing income statement for the last month
Variable costing income statement
Sales Revenue $41,250
($30*1,375)
Less: Variable cost per unit $19,869
1,375*($9.60+3.40+1.05 +$0.4)
Contribution Margin $21,381
($41,250-$19,869)
Less: Fixed costs $21,075
($ 16,125+$4,950)
Net Operating Income $306
($21,381-$21,075)
Therefore the complete variable costing income statement for the last month will have Contribution Margn of $21,381 and Net Operating Income of $306
3. Calculation to determine the full manufacturing cost per unit for the last month
Using this formula
Full manufacturing cost per unit = Direct material + Direct labor + variable manufacturing overhead + Fixed manufacturing overhead per unit
Let plug in the formula
Full manufacturing cost per unit= $9.60+3.40+1.05+ $ 16,125/1,500
Full manufacturing cost per unit=$14.05+ $10.75
Full manufacturing cost per unit=$24.08 per unit
Therefore the full manufacturing cost per unit for the last month is $24.08 per unit
4. Calculation to Complete a full absorption costing income statement
Absorption costing Income Statement
Sales Revenue $41,250
($30*1,375)
Less: Cost of Goods sold $34,100
($24.08*1,375)
Gross Margin $7,150
($41,250-$34,100)
Less: Selling expenses $2,530
($0.4*1,375+4,950)
Net Operating Income $4,620
($7,150-$2,530)
Therefore the Complete a full absorption costing income statement will have Gross Margin of $7,150 and Net Operating Income of $4,620
6. Calculation to determine the difference in profit between variable costing and full absorption costing.
Difference=(1,600-1,500)*($16,125/1,500)
Difference= 100*($16,125/1,500)
Difference=100*$10.75
Difference= $1,075
Therefore Variable costing would be higher $1,075
The price of lemonade is $1.50; the price of popcorn is $0.75. If Fred has maximized his utility by purchasing lemonade and popcorn, his marginal rate of substitution will be: Group of answer choices 1/2 lemonade for each popcorn. indeterminate unless more information on Fred's marginal utilities is provided. 2 lemonades for each popcorn. none of these options is correct
Answers
Answer: 1/2 lemonade for each popcorn
Explanation:
Price of lemonade = $1.50
Price of popcorn = $0.75
Let good 1 = popcorn
Let good 2 = lemonade
MRS = MU1/MU2 = P1/P2
= 0.75/1.50
= 1/2
Therefore, the marginal rate of substitution will be 1/2 lemonade for each popcorn.
Therefore, the correct option is A.
The company has net sales revenue of $3.6 million during 2018. The company's records also included the following information: Assets 12/31/17 12/31/18 Property, plant and equipment $ 2.3 million $ 2.5 million Licensing agreements $ 0.5 million $ 0.4 million Goodwill $ 0.3 million $ 0.3 million Investments $ 0.4 million $ 0.5 million What is the company's fixed asset turnover ratio for 2018
Answers
Answer:
1.5
Explanation:
Calculation to determine the company's fixed asset turnover ratio for 2018
Average Net Fixed Assets=3,600,000/ [(2,300,000 + 2,500,000)/2]
Average Net Fixed Assets=3,600,000/(4,800,000/2)
Average Net Fixed Assets=3,600,000/2,400,000
Average Net Fixed Assets = 1.5
Therefore the company's fixed asset turnover ratio for 2018 is 1.5
Suppose Gulf Shipping Company has the following results related to cash flows for 2019:
Net Income of $7,800,000
Decrease in Accounts Payable of $300,000
Increase in Accounts Receivable of $800,000
Depreciation of $1,200,000
Increase in Inventory of $900,000
Other Adjustments from Operating Activities of $700,000
Assuming no other cash flow adjustments than those listed above, create a statement of cash flows with amounts in thousands.
What is the Net Cash Flow from Operating Activities?
Note: Financial results are provided in dollars but the income statement units are thousands of dollars.
Please specify your answer in the same units as the statement of cash flows (i.e., enter the number from your completed statement of cash flows).
Answers
Answer:
$7,700
Explanation:
Cash Flow from Operating Activities
Particulars Amount
Net Income $7,800
Add: Depreciation $1,200
Add: Other adjustments $700
Cash flow before working capital adjustments $9,700
Less: Decrease in Accounts payable ($300)
Increase in Accounts receivable ($800)
Increase in Inventory ($900)
Net Cash flow from Operating activities $7,700
__________ is a risk-based strategic assessment and planning technique used primarily for security but which also can be used for disaster recovery planning purposes.
Answers
Answer: Octave risk assessment
Explanation:
Operationally Critical Threat, Asset, and Vulnerability Evaluation (OCTAVE) risk assessment is is simply a self-directed approach whereby the employees in an organization take responsibility and set up the security strategy of the organization.
It's a risk-based strategic assessment and planning technique used primarily for security but which also can be used for disaster recovery planning purposes. In this case, with the knowledge of the employees, the team defines the state of security in the organization, identify the risks and then sets a security strategy.
A company issues bonds at par on April 1. These 9% bonds have a par value of $100,000 and pay interest annually. April 1,is four months after the most recent interest payment date. How much total cash interest is received on April 1 by the bond issuer
Answers
Answer: $3000
Explanation:
From the information given, we are told that a company issues bonds at par on April 1 and that these 9% bonds have a par value of $100,000 and pay interest annually. April 1,is four months after the most recent interest payment date.
The total cash interest that is received on April 1 by the bond issuer will be:
= $100000 × 9% × 4/12
= $100,000 x 0.09 x ⅓
= $3,000
Question 4 of 15. Barney and Len each own 40% of partnership BLT. On September 15, 2019, Barney sells his interest to Ted, who is a 20% partner. On September 16, 2020, Len sells his interest to Ted. When does the partnership terminate? 9/15/2020 9/16/2020 12/31/2020 The partnership does not terminate.
Answers
Answer: 9/16/2020
Explanation:
Following the information given in the question, it should be noted that the partnership will terminate on 9/16/2020.
A partnership is terminated in a situation whereby there's a transfer of interest such that there's only one partner who then remains. In this casez the termination date will be the date that the interest was sold. Since the sale of interest took place on September 16, 2020, then this will be the termination date.
A company rents a building with a total of 60,000 square feet, which are evenly divided between two floors. The company allocates the rent for space on the first floor at twice the rate of space on the second floor. The total monthly rent for the building is $36,000. How much of the monthly rental expense should be allocated to a department that occupies 12,000 square feet on the second floor
Answers
Answer:
Cost allocated= $7,200
Explanation:
Giving the following information:
Total number of square feet= 60,000
Total estimated costs= $36,000
Department square feet= 12,000
First, we need to calculate the cost allocation for each square foot:
Cost allocation rate= 36,000 / 60,000= $0.6 per square foot
Now, we can allocate costs to the department:
Cost allocated= 0.6*12,000
Cost allocated= $7,200
Allie, a human resource manager at an electronics firm, observes that many employees who are reaching the traditional retirement age are not interested in leaving the organization. Which statement best explains the reason for this trend among older employees?
A) There are laws against gender discrimination.
B) There is a rise in the availability of pensions.
C) Jobs are becoming less physically demanding.
D) Phased-retirement programs require employees to work longer hours.
E) Older workers generally don't have much debt.
Answers
Answer:
C) Jobs are becoming less physically demanding.
Explanation:
Since in the question it is mentioned that at the time when the employee reaches to the retirement age so they are not interested in leaving the organization as they dont want to search for a new job also they are happy with the current job. In addition to this, jobs are very less physical demanding because of their ages
Therefore the option c is correct
The managerial accountant at Fast and Mean Manufacturing reported that the organization contains an automated production line to manufacture and produce its products for consumers to enjoy in the marketplace. The managerial accountant reported that the company uses the high-low method to estimate the costs in the new budget. The managerial accountant reported the following information: Month Total Machine-Hours Total Costs January 250,000 $5,500,000 February 248,000 $5,260,000 March 249,000 $5,400,000 April 248,000 $5,220,000 May 238,000 $5,180,000 June 230,000 $5,130,000 Compute the slope of the mixed cost, or the variable cost per unit of activity. Compute the vertical intercept, or the fixed cost component of the mixed cost. What is the mixed cost equation
Answers
Answer: See explanation
Explanation:
1. Compute the slope of the mixed cost, or the variable cost per unit of activity.
Variable cost per unit will be:
= (Total Cost at the highest level-l - total cost at the lowest level) / (Highest activity level - lowest activity level)
= (5500000 - 5130000)/(250000 - 230000)
= 370000/20000
= $18.50
2. Compute the vertical intercept, or the fixed cost component of the mixed cost.
The fixed cost will be:
= Total cost - Variable cost
= $5,500,000 - (25,000 × $18.50)
= $5,500,000 - $4,625,000
= $875,000
3. What is the mixed cost equation
Mixed Cost equation will be:
= Fixed Cost + (Variable cost per unit × Total Units of activity )
= 875000 + (18.75 × x)
Y = 875000 + 18.75x
Garcia Company issues 10%, 15-year bonds with a par value of $240,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%, which implies a selling price of 117 1/4.
A Confirm that the bonds' selling price is approximately correct (within $100). Use the present value tables B.1 and B.3 in Appendix B. (Round all table values to 4 decimal places, and use the rounded table values in calculations. Round your other final answers to the nearest whole dollar amount.)
Per value x price = Selling price
$240,000 117 1/4 $281,400
Cash flow Table value Present Value
$240,000 par (maturity) value
$12,000 interest payment
price of the bond
Difference due to rounding of table values
Answers
Par Value x price = Selling Price
240,000 x 117.25 = 281,400
Cashflow Table value = Present value
240,000 0.3083 (Present Value table 4%, 30 periods) 73,992
12,000 17.292 (PV annuity table 4%, 30 periods) +207,504
281,496
Difference due to rounding 281,400 -281,496 = -96
Beaver Company (a multi-product firm) produces 5,000 units of Product X each year. Each unit of Product X sells for $8 and has a contribution margin of $5. If Product X is discontinued, $18,000 of fixed overhead would be eliminated. As a result of discontinuing Product X, the company's overall operating income would:_______.
A. Decreaseby $25,000
B. Increase by $43,000
C. Decrease by $7,000
D. Increase by $7,000
Answers
Answer:
C. Decrease by $7,000
Explanation:
Calculation to determine what company's overall operating income would Decrease by
Using this formula
Overall operating income =(Product X units*Contribution margin )-Fixed overhead eliminated
Let plug in the formula
Overall operating income=(5,000 units*$5)-$18,000
Overall operating income=$25,000-$18,000
Overall operating income=$7,000 Decrease
Therefore As a result of discontinuing Product X, the company's overall operating income would:Decrease by $7,000
Fruit Car Company manufactures 10 fruit themed cars per month. A compact media center is included in each car. Fruit Car Company manufactures the media center in-house but is considering the possibility of outsourcing this function. At present, the variable cost per unit is $275, and the fixed costs are $39,000 per month. The CEO, wishes to increase operating income by $5000. He has an offer from a foreign producer to provide the media centers at a contract cost of $325 per unit. The required savings in fixed costs in order to achieve his objective would be ________.
a. 52800.
b. $200.
c. 51200.
d. $1000.
Answers
Cash Flow Activity 1. Sold stock investments for cash. 2. Received cash payments from customers. 3. Paid cash for wages and salaries. 4. Purchased inventories with cash. 5. Paid cash dividends. 6. Issued common stock for cash. 7. Received cash interest on a note. 8. Paid cash interest on outstanding notes. 9. Received cash from sale of land. 10. Paid cash for property taxes on building.
Answers
Answer:
Question is to classify each entry as either operating, investing, or financing activities assuming the indirect method.
Operating activities are those that involve the company's day to day activities of selling their goods and services.
Investing activities refer to those that involve the company buying or selling fixed assets or the securities of other companies.
Financing activities are those that have to do with Equity and long term debt which means that dividends fall here.
1. Sold stock investments for cash. ⇒ INVESTING
2. Received cash payments from customers. ⇒ OPERATING
3. Paid cash for wages and salaries. ⇒ OPERATING
4. Purchased inventories with cash.⇒ OPERATING
5. Paid cash dividends. FINANCING
6. Issued common stock for cash. ⇒ FINANCING
7. Received cash interest on a note. ⇒ OPERATING
8. Paid cash interest on outstanding notes. ⇒ OPERATING
9. Received cash from sale of land. ⇒ INVESTING
10. Paid cash for property taxes on building. ⇒ OPERATING
Write an example of liability accounts
Answers
Ex: A liability account is used to store all legally binding obligations payable to a third party.
price strategy of aquafina
Answers
Standard Direct Materials Cost per Unit Crazy Delicious Inc. produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (1,800 bars) are as follows: Ingredient Quantity Price Cocoa 480 lbs. $0.30 per lb. Sugar 150 lbs. $0.60 per lb. Milk 120 gal. $1.20 per gal. Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent. $fill in the blank 1 per bar
Answers
Answer:
Crazy Delicious Inc.
The standard direct materials cost per bar of chocolate is:
= $0.21.
Explanation:
a) Data and Calculations:
A batch of chocolate = 1,800 bars
Ingredient Quantity Price Total Cost
Cocoa 480 lbs. $0.30 per lb. $144.00
Sugar 150 lbs. $0.60 per lb. 90.00
Milk 120 gal. $1.20 per gal. 144.00
Total standard materials costs $378.00
Standard direct materials cost per bar $0.21 ($378/1,800)
b) The standard direct materials cost per bar is computed as the dividend of total direct material costs per batch divided by the batch quantity.
Sales-Related Transactions
Merchandise is sold on account to a customer for $7,400, terms FOB shipping point, 1/10, n/30. The seller
paid the freight of $390. Determine the following:
a.
Amount of the sale
b.
Amount debited to Accounts Receivable
c.
Amount received within the discount period
7,326 X
Answers
Answer:
a. Particulars Amount
Sales revenue - Gross $7,400
Less: Sales discount $74 ($7,400*1%)
Net sales revenue $7,474
b. Particulars Amount
Sales revenue-Net $7,474
Add: Freight paid on behalf of purchaser $390
Account receivable debited $7,864
c. Particulars Amount
Total amount due $7,938
Less: Sales discount ($7,400*1%) $74
Net amount to be received $7,864
Here and After Corporation plans a new issue of preferred stock. Similar risk stock currently offers an annual return to investors of 18.0%. The company wants the stock to sell for $743.00 per share. What annual dividend must the company offer?
a. $192.85.
b. $4,127.78.
c. $148.45.
d. $133.74.
e. $3,809.94.
Answers
Answer: d. $133.74
Explanation:
The dividend paid to preferred shareholders is constant and based on the annual rate of return on the stock. If they plan to sell at a price of $743 per share, the dividend will be:
Dividend = Annual rate of return on stock * Price of stock
= 18% * 743
= $133.74
